Global Investment Views - April 2023
Monday 03 April 2023
Crisis memories return in vulnerable markets
March brought a wake-up call to markets after a complacent start to the year. The trigger was the failure of Silicon Valley Bank and other US regional banks, followed by Credit Suisse in Europe. The repricing of core yields and changes to market expectations regarding central bank actions have been massive in both the US and Europe. Bond volatility reached the highest levels since the Great Financial Crisis, while equity volatility also spiked, but to a lesser extent.
Looking ahead, we think investors should consider the following factors:
- Concerns around systemic risks
- Economic growth in stressful conditions.
- Central bank actions when inflation is persistent.
- The impact on EM.
Global Investment Views